30 March 2020

COVID19 impact on statutory compliance of India | Highlights of the announcement on Direct and indirect tax made by FM Nirmala Sitharaman




COVID19 impact on statutory compliance of India


Due to the pandemic COVID-19, the whole nation is facing major economic impacts. During the lockdown phase, the situation became even more serious. Although the lockdown is very essential to control the virus from spreading very rapidly.

On 23 March 2020, our Finance Minister, Smt. Nirmala Sitharaman announce some benefits in statutory and regulatory compliance to offer some sort of relief to the taxpayers after considering the present situation due to the pandemic.

Special tax benefit for CoronavirusThe following announcements she made on direct and indirect taxation:


Direct Tax

  • The due date for income tax returns for the financial year 2018-19, extended to 30 June 2020 (from 31 March 2020). 
  • Interest rate reduced to 9% (from 12%) for any delayed payments of income tax made till 30 June 2020
  • Interest rate reduced to 9% (from 18%), for any delayed deposit of TDS made till 30 June 2020
  • The last date for Aadhaar & Pan linking extended to 30 June 2020 (from 31 March 2020)
  • Waiver for the additional 10% tax for the "Vivad se Vishwas" scheme. Due date is extended till 30 June 2020 for this scheme also.
  • Any kind of compliances under the Income Tax Act, Wealth Tax Act, Benami Transaction Act, Black Money Act, "Vivad se Vishwas" scheme, also extended till 30 June 2020.

Indirect tax (GST)

  • GST returns (including composition scheme) for the month of March, April & May, are extended till 30 June 2020. (Although the exact date of filing may vary to reduce the pressure on the system)
  • Companies having a turnover of less than 5 cr. may enjoy waiver of late fee, penalty & interest till 30 June 2020. The same will be applicable for other companies also, except for an interest at a reduced rate of 9%. (from 18%).

Indirect tax (Custom duty)

  • No interest shall be levied on the "Sabka Vishwas" scheme, irrespective of the amount of dispute. The due date is also extended under this scheme till 30 June 2020.
  • Custom clearance will work for 24×7 till 30 June 2020.

[Estimated reading time: 1 minute, 36 seconds.]
[Contains 322 words]

29 March 2020

Which ITR form Is applicable for me


  

Which ITR form Is applicable for me

Welcome viewers to my another article on Income tax in India. In our country, There are seven returns are currently available. Now the question is, Which ITR should you choose out of them. In this article, you should find all the seven Income tax returns and their applicability, to choose the right one applicable for your case.
Choose the right Income Tax Return
Right income tax return is important

This article is also available is sway click here to open in sway or continue reading...

ITR1

ITR1 is also known as "Sahaj" return. It is the most simple ITR out of the seven. ITR1 is the only return that can be filed directly on the Online portal of income tax. You can fill ITR1, 
  • If you are a resident individual of India
  • Your source of income includes Income from salary/pension 
  • Income from house property (Limited to one) and 
  • Income from other sources (Except winning from horse race and lotteries).
You should not file ITR1 
  • If you have income from any other sources
  • If your total annual income exceeds Rs.50,00,000.
  • If you are an NRI or Resident but not ordinarily resident.
  • If you are not an individual
  • If you are a resident having assets in other countries.
  • If you are a director of a company.
  • If you have agricultural income up to Rs.5000

ITR2

In terms of complexity ITR two is a little bit more complex than ITR1, as it has more scope for Taxpayers. It can be filed by both resident and non-resident of India. You should go for ITR2 if your source of income includes all of the incomes are mentioned in ITR1 plus
  • If you have more than one house property income
  • If you have any kind of income from other sources including winnings from horseraces and lotteries
  • If you have income from capital gains
  • If you have a total annual income of more than Rs.50,00,000.
  • If you have agricultural income more than Rs.5000
  • If you are a director of a company
You should not file ITR2
  • If you have income from business or profession
  • If you are not an individual or HUF

ITR3

This is the most complex form of ITR, an individual may fill. ITR3 includes all the sources of income. You should file ITR3 if your source of income includes all of the incomes are mentioned in ITR1 plus
  • If you have income from business or profession
You should not file ITR3
  • If you are a company
  • If you are any other person than an individual or HUF (like Farms, Association of persons, Artificial judicial person, Body of individual, etc.)

ITR4

ITR4 is also known as "Sugam" return. This ITR is for those persons, who opted for the presumptive income scheme. The scheme Offers exemption to the small businesses, from maintaining regular books of accounts under section 44AA. They are also free from audit under section 44AB. You should file ITR4 if you are a resident individual, HUF or partnership firm other than LLP
  • Having total income does not exceed Rs.50,00,000
  • Having income from business profession under section 44AD, 44AE or ADA
  • Having Income from other sources not including winning from horseraces or lotteries.
  •  Having a single house property income
  • Having agricultural income up to Rs.5000
You should not file ITR4
  • If you have a business which is liable to maintaining regular book of accounts under section 44AA and to maintain audit under section 44AB
  • If you are a limited liability partnership firm
  • If you are a company
  • If your total income exceeds Rs.50,00,000

ITR5

This ITR is for those persons, who are falling in a category other than an individual or HUF. You should file ITR5
You should not file ITR5
  • If you are a company
  • If you are an individual or HUF

ITR6

This ITR is for companies, not claiming exemption under section 11. Under section 11, a company can claim exemptions for income from property held for charitable or religious purposes. ITR6 cannot be filed manually. It is the only ITR, for which the e-filing is mandatory. You should have a CIN issued by the Ministry of Company Affairs, to file this online. You should file ITR6
  • If you are a company not claiming exemption under section 11
You should not file ITR6
  • If you are not a company
  • If you are a company claiming exemption under section 11

ITR7

This ITR is applicable for any person including companies Who are liable to file the return under section 139 (4A), 139 (4B), 139 (4C), 139 (4D), 139 (4E) or 139 (4F). You can file ITR7
  • If you earn from a charitable or religious trust under section 139 (4A)
  • If you earn from a political party under section 139 (4B)
  • If you are from a scientific research institution under section 139 (4C)
  • If you earn from University, College or Institutions under section 139 (4D)
  • If you are filing the return as a business trust under section 139 (4E)
  • If you are filing the return as an investment fund under section 139 (4F)
You should not file ITR7
  • If you are not claiming exemption under section 139 (4A), 139 (4B), 139 (4C), 139 (4D), 139 (4E) or 139 (4F).
[818 Words]
[Estimated reading time: 4 Min 5 Sec.]

How to get more interest from bank account


How to get more interest from bank account

auto sweep facilityIn India, most of us have at least one savings account. But most of them earn interest less than 4% interest annually. We all know that If we decide to put that amount into an fixed deposit account, it will earn more interest. But the problem is loss of liquidity. If you put that amount into FD account, it will obviously earn more interest by compromising it's liquidity. But as you read this article, you want to earn more interest from your savings account without losing the liquidity, right? Well actually you can expect that because there is an alternative way to earn high amount of interest rate without compromising it's liquidity. There is a facility called auto sweep, it can be provided by most of the bank on request. And the good thing is that, it doesn't charge extra in most of the cases.

What is auto sweep facility

In auto sweep, your ideal money laying in savings account will automatically get converted into MOD account, and it will again transferred automatically into your savings account when it needed. Hence, you don't have to worry about transferring or anything to get your money accessable from your savings account.

How to avail this feature

Most of the bank have this facility, but you are suggested to get confirmation from bank first. Many bank facilate this to their salary account holders by default, so in that case there is no need to doing anything as it already active. Now if it is inactive then it can be activated through either net banking or by applying manually. In SBI you can enable it from net banking
[274 Words]
[Estimated reading time: 1 Min 18 Sec.]